Value Added Services: A new

dimension to Mobile Telephony

Presented by:

Ruchi Anand
Ahraz Iqbal.
A snapshot:
TRAI reports that there are 601 Mn mobile subscribers in
India as of April 2010
Mobile Value Added Services (MVAS)-differentiated
offering to matured users and basic services to financial
challenged sectors.
Traditional MVAS- SMS and CRBT (Caller Ring Back Tone)
Constraint:
1)Limited technological infrastructural platform
2)Declining ARPU (Average revenue per user)
Scope: Innovative offerings involving user-centric content
and application services.
 Impact of evolving technology on mass
media:

Source: Tomi T. Ahonen, “Mobile as 7th of the Mass Media”

•More than 50% of country’s population are Mobile
subscribers
•One of the lowest tariffs in voice communication
•Innovations in low-cost feature phones using which mobile
users are capable of using disparate content such as audio,
video and interactive games
While the urban top-tier markets are near saturation with the
number of subscribers, the growth has mainly been triggered by
subscription in rural areas – Circle B and Circle C.
 Declining ARPU

•For instance, Per-Second Billing, introduced by Tata Docomo, was followed by

almost all the
mobile operators. Call rates dropped from Re. 1 per minute just 2 years back to 1
paise per
second – resulting in round of price wars.
Scope of VAS-Pre paid market
 VAS- A new revenue model??

• Declining
ARPU
MOU Source of
‘infotainme
• Price-no nt’
more a
diffrenetiat
e offering
MVAS-Characteristics
MVAS-”Services that are not part of the basic voice
offer and availed separately by the end user.
They are used as a tool for differentiation and allow
mobile operators to develop another stream of
revenue.”
Add-on service, for which the operator charges a
premium.
Types of Users :

URBAN USER: NON-URBAN

Expecting more USER:
utility. ‘Windows to the
•Videos world’
•Online gaming •Entertainment
•M-commerce •Economic-agri
v
•Mobile apps culture related data
•Location Based
Service
Market size of MVAS:
Various modes in VAS:
Content accessed in MVAS:
 Mobile VAS Ecosystem: Operator-centric model

PUSH
THEOR
Y
Shift from operator to User Centric System;

This change will be driven by the following factors:

Services leading users to be operator-agnostic such as
Mobile Number Portability
Rollout of 3G technologies
Expectations of evolved MVAS users
 PULL
THEOR
Y
Opportunities and Challenges for MVAS
“Successful VAS”
So far, SMS and CRBT has been most successful.